Minnesota quarterly tax collections total $4.1 billion

Minnesota collected $4.1 billion in state taxes during the first quarter of this fiscal year, falling just $2 million or less than 0.1 percent short of the revenue projected in February.

Both income and sales tax collections were higher than forecast, but corporate tax receipts and those from other, smaller taxes fell short of estimates, the Minnesota Management and Budget Department reported in its quarterly economic update Thursday.

After a hefty cigarette tax increase took effect July 1, tobacco tax revenues dropped $29 million or 21 percent short of projections, accounting for almost half of the shortfall in other taxes.

The update is the first look at tax collections since the 2013 Legislature enacted significant changes in state income, corporate, sales and tobacco taxes. As expected, those tax increases generated about $240 million in new revenue during the three-month period that started July 1.